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TMI Blog2005 (10) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... s a legitimate deduction in the computation of the appellant's business income? 2. Whether the Tribunal erred in its interpretation of section 32AB of the Act and particularly sub-sections (1) and (3) thereof?" - dividend income earned by the assessee-company from its investment in the UTI should be included in computing the profits of eligible business under section 32AB - held that the view take ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on in the computation of the appellant's business income? 2. Whether the Income-tax Appellate Tribunal erred in its interpretation of section 32AB of the Act and particularly sub-sections (1) and (3) thereof?" Learned counsel appearing for the Revenue does not dispute that so far as the first question is concerned, the same is covered by the judgment of the apex court in the case of Bharat Ear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income including income chargeable to tax under the head 'Profits and gains of business or profession' and if the income from such business is derived from an 'eligible business' and if the assessee has out of such income utilised any amount during the previous year for the purchase of new plant or machinery then it is entitled to a set off of a sum equal to 20 per cent, of the profit of such eli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... We also find that this business of the assessee-company of buying and selling of units is a business as contemplated under section 32AB of the Act. The question then is: is it an eligible business under the said section? The term 'eligible business' is defined under sub-section (2) of section 32AB. As per that definition, all business of an assessee-company will be an eligible business unless it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... business under section 32AB of the Act." No contrary view has been brought to our notice. Since this court has relied upon the observations of the Supreme Court and held that the view taken by the Tribunal relating to deduction under section 32AB with regard to income from interest, rent and dividend would fall within the meaning of "eligible business" was correct, following the ratio of the sai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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